US President Joe Biden at a news conference in Tokyo last week. Biden is facing strong political headwinds. Reuters
US President Joe Biden at a news conference in Tokyo last week. Biden is facing strong political headwinds. Reuters
US President Joe Biden at a news conference in Tokyo last week. Biden is facing strong political headwinds. Reuters
US President Joe Biden at a news conference in Tokyo last week. Biden is facing strong political headwinds. Reuters


Both Biden and Trump are in trouble, but who will blink first?


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  • Arabic

May 31, 2022

The two major US political parties – the Democrats and the Republicans – are perennially in upheaval. That's by design in a system that funnels all major political inputs into two giant, uneasy coalitions.

But the two party leaders are looking unusually weak these days. In different ways, Donald Trump and Joe Biden aren't inspiring much confidence.

Mr Biden's is the more straightforward case. He and his fellow centrists are still in charge of the Democratic Party, even though they face persistent challenges from a left wing that wants to take control. Like many first-term presidents, Mr Biden is facing a second year of misery. His poll numbers range from bad to abysmal, and despite his deft handling of the Ukraine crisis, it's still "the economy, stupid" that shapes the national mood.

First-term presidents' parties typically lose ground in their first midterms. Mr Biden may face a particularly large setback, because his party already has little room to manoeuvre in Congress. The persistence of significant inflation and the growing threat of a potential recession explain the distinctly sour mood of the country. It's looking like a grim November for the Democrats.

Time is not on Trump's side. But it may be on Biden's

However, his opposite number, Mr Trump, appears, if anything, to be in even bigger trouble. It's remarkable that he has been able to maintain a tight grip over his party despite his 2020 presidential election defeat to Mr Biden, although that's partly because he has convinced most Republicans that he didn't actually lose but was cheated. But as the Republican primaries for the November election are demonstrating, that grip is loosening considerably.

His spectacular comeuppance in Georgia last week was stunning. David Perdue, his anointed candidate, was demolished by incumbent governor Brian Kemp by more than 50 percentage points. Even worse, Georgia Republicans also re-nominated Secretary of State Brad Raffensperger. Both men rebuffed Mr Trump's claims about massive fraud in Georgia's 2020 election, and Mr Raffensperger did so with public derision and contempt. Mr Trump's effort to take vengeance on these alleged turncoats was of no interest to Republicans in Georgia.

Mr Trump's efforts to play the wrathful kingmaker have had, at best, mixed results. The Georgia humiliation was entirely self-inflicted. There was no rational reason for the former president to make state-level primaries de facto referendums on himself and his ridiculous fabrications about the 2020 vote. While most Republican candidates won't criticise Mr Trump or challenge his "big lie" about that election, it's clear that voters can distinguish between candidates who appeal to them and those he anoints. His cult of personality is in trouble.

It should be good news to him that his style of politics appears to be transferable and to have a life of its own. But it's evidently, and unsurprisingly, not. While he is still easily the most popular Republican figure, it's almost certain that Mr Trump would face some sort of opposition, and possibly a potent and credible one, if he seeks the 2024 presidential nomination.

Then US president Donald Trump listens as Florida Governor Ron DeSantis in Washington in 2020. Trump could face a primary challenge from DeSantis in 2024. AFP
Then US president Donald Trump listens as Florida Governor Ron DeSantis in Washington in 2020. Trump could face a primary challenge from DeSantis in 2024. AFP

Potential challengers include Florida Governor Ron DeSantis. Indeed, Mr DeSantis appears to be slowly constructing an American analogue to Viktor Orban's Hungarian "illiberal democracy" in Florida with elements of authoritarianism and hints of fascism. Mr DeSantis refuses to say whether he would challenge Mr Trump for the nomination or not. And the former president has not formally announced another campaign for the presidency.

But it is becoming increasingly clear that if he cannot move past re-litigating the 2020 election, he will not be a viable national candidate in 2024, even if he can win the party nomination. A group of prominent Republican leaders have banded together to oppose what they call Mr Trump's "revenge tour" of primary elections, and are plainly looking for alternative leadership.

Time is not on Mr Trump's side, particularly if he continues to obsess about 2020. But it may be on Mr Biden's. There is a strong pattern of Americans electing a president, then defeating his party in the first midterms, especially in the House of Representatives, and then re-electing him for a second term. This pattern of divided government applied to Ronald Reagan, Bill Clinton and Barack Obama, while George W Bush's first midterms were held in the aftermath of the 9/11 terrorist attacks and its atmosphere of national unity.

So, Mr Biden’s chances of re-election may be better than many assume at present. Arguably the biggest challenge he will face is his age. He was 78 when he was elected as the oldest US president in history. Mr Trump, however, was the third oldest at age 70.

The American political system doesn't only suffer from structural dysfunctions, particularly anti-democratic elements that have yielded many dangerous manifestations of minority rule. It's also beset by an unhealthy level of gerontocracy, the rule of the elderly. It's not just Mr Biden and Mr Trump. Most of the senior leadership in both parties in the House and Senate are remarkably advanced in age. That's not necessarily a disaster, but it does demonstrate the undue advantage incumbents generally enjoy and, more strikingly, the noticeable lack of talent in the two, or in some cases even three, generations labouring to succeed them.

Mr Trump already defied expectations by winning the Republican nomination and then the presidency in 2016, and by remaining the dominant Republican despite his 2020 defeat. But the signs that his ascendancy may be ebbing are clear. Mr Biden's real test, meanwhile, will come after the midterms, particularly if, as seems likely, his party suffers a major defeat. That would almost certainly initiate a concerted and bitter attack from the left on his centrist leadership and policies.

Both the Republican and the Democratic leaders are old enough that their health is an issue, and, although it's obvious that both men are fully in control of their wits, both are frequently accused of being senile. Yet, Mr Biden has a huge advantage. He is in the White House. And that gives him leverage Mr Trump doesn't have to fend off internal party critics, battle Republicans and persist in shaping a forward-looking agenda. He's got enormous power.

Mr Trump not only lacks such authority, as ever he's his own worst enemy. As long as he makes dozens of state-level elections de facto referendums on his leadership and, especially, remains fixated on re-litigating 2020, his influence on national, and even Republican, politics can only continue to decline.

If you go...

Etihad Airways flies from Abu Dhabi to Kuala Lumpur, from about Dh3,600. Air Asia currently flies from Kuala Lumpur to Terengganu, with Berjaya Hotels & Resorts planning to launch direct chartered flights to Redang Island in the near future. Rooms at The Taaras Beach and Spa Resort start from 680RM (Dh597).

How Alia's experiment will help humans get to Mars

Alia’s winning experiment examined how genes might change under the stresses caused by being in space, such as cosmic radiation and microgravity.

Her samples were placed in a machine on board the International Space Station. called a miniPCR thermal cycler, which can copy DNA multiple times.

After the samples were examined on return to Earth, scientists were able to successfully detect changes caused by being in space in the way DNA transmits instructions through proteins and other molecules in living organisms.

Although Alia’s samples were taken from nematode worms, the results have much bigger long term applications, especially for human space flight and long term missions, such as to Mars.

It also means that the first DNA experiments using human genomes can now be carried out on the ISS.

 

LA LIGA FIXTURES

Friday Athletic Bilbao v Celta Vigo (Kick-off midnight UAE)

Saturday Levante v Getafe (5pm), Sevilla v Real Madrid (7.15pm), Atletico Madrid v Real Valladolid (9.30pm), Cadiz v Barcelona (midnight)

Sunday Granada v Huesca (5pm), Osasuna v Real Betis (7.15pm), Villarreal v Elche (9.30pm), Alaves v Real Sociedad (midnight)

Monday Eibar v Valencia (midnight)

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Number of tracks: 11

Rating: 4/5

Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Updated: May 31, 2022, 2:00 PM